YUNOVA Guides · Money & Finance
Income Tax Basics: What Everyone Should Know
General information for learning, not tax advice. Rates and rules change every year. Figures here are from the Income Tax Department's e-filing portal as read in October 2026; check the latest rules on incometax.gov.in or with a tax professional before you file.
Income tax is the tax you pay on what you earn in a year, and an income tax return (ITR) is the form in which you report that income to the government. Understanding the basics helps you choose the right regime, avoid mistakes and file on time. This guide explains the key ideas in plain words, including the change to the new Income-tax Act from 1 April 2026.
The new law from 1 April 2026
The Income-tax Act, 2025 replaced the Income-tax Act, 1961 and came into force on 1 April 2026. One visible change is the idea of a single 'tax year', replacing the older pair of 'previous year' (the year you earn) and 'assessment year' (the year you file). The core ideas taught here, such as heads of income, deductions and TDS, carry over.
Returns for income earned before 1 April 2026 are still filed under the 1961 Act's framework. If you are reading this while filing, check which law and which forms apply to your year on the e-filing portal.
The five heads of income
Indian tax law groups income under five heads: income from salaries; income from house property; profits and gains of business or profession; capital gains; and income from other sources, such as interest. Each head has its own rules for what is taxed and what can be deducted.
Your total income is worked out by adding income under all heads, adjusting for losses where the law allows, and subtracting eligible deductions. Tax is then calculated on that total using the rates of the regime you are in.
Old regime and new regime
Since assessment year 2024-25, the new tax regime under section 115BAC is the default for individuals. It has lower rates but allows very few deductions. The old regime keeps many deductions and exemptions but has higher rates. Salaried people without business income can choose the regime each year in their return.
For assessment year 2026-27 (income earned in financial year 2025-26, before the new Act), the e-filing portal lists these new-regime rates for individuals: nil up to ₹4,00,000; 5% from ₹4,00,001 to ₹8,00,000; 10% to ₹12,00,000; 15% to ₹16,00,000; 20% to ₹20,00,000; 25% to ₹24,00,000; and 30% above ₹24,00,000. Health and education cess of 4% is added to the tax.
The same page lists a rebate under section 87A for resident individuals: up to ₹60,000 in the new regime when taxable income does not exceed ₹12,00,000, and up to ₹12,500 in the old regime when taxable income does not exceed ₹5,00,000. Rates for tax year 2026-27 (income from 1 April 2026) were not separately confirmed from an official source when this guide was reviewed: the Government's Union Budget 2026-27 summary lists no change to individual slabs, but that is not an official statement of the rates. Check the current page on incometax.gov.in before using these figures for income earned after 31 March 2026.
Which return to file
The department publishes which form applies to whom. ITR-1 (Sahaj) is for resident individuals with total income up to ₹50 lakh from salary or pension, one house property, other sources such as interest, and agricultural income up to ₹5,000, among other conditions. People with business income, several properties or larger capital gains use other forms, such as ITR-2, ITR-3 or ITR-4.
Before filing, compare your own records with Form 26AS and the Annual Information Statement (AIS) on the portal. These show tax deducted at source and many financial transactions reported about you.
Who should learn income tax
Every salaried person, pensioner, freelancer and small business owner benefits from understanding the basics. Commerce students, CA, CS and CMA aspirants study the subject in depth, and people working in accounts or tax offices use it daily.
How long it takesइसमें कितना समय लगता है
On YUNOVA right now: 13 modules · 69 topics · about 31 hours of lessons, free.
YUNOVA's Income Tax course has 13 modules and 69 topics, with about 31 hours of lessons. It follows the order used in professional taxation syllabi, then adds practical modules on filing your own ITR and working in a tax office.
At 30 to 45 minutes a day, a learner who wants to file their own return can cover the basic concepts, salaries, other sources, deductions and the filing modules in about a month. The full course, including business income, capital gains and exam practice, takes two to three months.
Common mistakes beginners makeशुरुआत में होने वाली आम गलतियाँ
- Choosing a regime without comparingThe better regime depends on your income and deductions. Work out tax under both before you decide each year.
- Not checking AIS and Form 26ASMissing interest income or TDS shown in AIS can lead to notices. Match your return with the department's statements before filing.
- Filing the wrong ITR formEach form has conditions. Check the department's guidance on which return applies to you.
- Leaving filing to the last dayLast-minute filing causes errors and portal delays. Collect documents early and file well before the due date for your year.
- Relying on old figuresSlabs, rebates and limits change. Always check the current year's rules on incometax.gov.in.
A 30-day starter plan on YUNOVAYUNOVA पर 30 दिन का starter plan
Days 1–7
- Basic concepts and residential status
Learn the Act, the Finance Act and rules, the tax year, and how residential status decides what is taxed in India.
Days 8–14
- Income from Salaries
Understand what counts as salary, which allowances and perquisites are taxed, and how TDS on salary works.
Days 15–19
- Income from house property
- Income from other sources
Learn how rent and home loans are treated, and how interest and other income are taxed.
Days 20–25
- Deductions from gross total income
- Computation of total income and tax
Study the main deductions as sections of the law, and practise computing total income and tax under both regimes.
Days 26–30
- TDS, advance tax and filing the return
- Filing your own ITR
Learn TDS and advance tax, then walk through filing a return on the e-filing portal step by step.
The module names are YUNOVA's own, in the order the skill's path teaches them.
Questions people askलोग जो सवाल पूछते हैं
Do I need to file a return if my tax is zero?
In some situations the law requires a return even when no tax is due, and filing can also help with refunds, loans and visas. Check the conditions for your year on the e-filing portal.
Which regime is better for me?
It depends on your income and the deductions you can claim. Calculate tax under both regimes with your own numbers. The course shows how.
Where do I file my return?
On the Income Tax Department's official e-filing portal, incometax.gov.in. Be careful of look-alike websites and messages.
Does YUNOVA give tax advice?
No. YUNOVA teaches how income tax works. For decisions about your own case, check the department's guidance or consult a qualified professional.
Start free on YUNOVAYUNOVA पर free में शुरू करें
The whole path is free: watch a lesson, practise, and move to the next topic. No fees, no paywall.
हिंदी में सारांश
Income tax वह tax है जो आप साल भर की कमाई पर देते हैं, और ITR वह form है जिसमें आप सरकार को अपनी income बताते हैं। 1 अप्रैल 2026 से नया Income-tax Act, 2025 लागू है। यह guide पाँच heads of income, old और new regime, 87A rebate और सही ITR चुनने की बुनियादी बातें समझाती है। यह tax advice नहीं है; file करने से पहले incometax.gov.in पर नए नियम ज़रूर देखें।
Sourcesस्रोत
- Return / forms applicable and tax slabs for salaried individuals, AY 2026-27, Income Tax Department, Government of India (accessed 18 October 2026)
- File ITR-1 (Sahaj) online: FAQs, Income Tax Department, Government of India (accessed 18 October 2026)
- e-Filing portal, Income Tax Department, Government of India (accessed 18 October 2026)
- Summary of Union Budget 2026-27, Press Information Bureau, Government of India (accessed 18 October 2026)
- Income-tax Act, 2025, Wikipedia (accessed 18 October 2026)
Written by YUNOVA for learning. It is general information, not professional, legal, financial or tax advice.यह guide YUNOVA ने सीखने के लिए लिखी है। यह सामान्य जानकारी है, professional, legal, financial या tax advice नहीं।